According to Xinhua, in China, home buyers have been paying a "housing maintenance fund" since 1998, which covers maintenance on residential buildings.
However, just like humans, housing can get old and sick. By the end of 2022, the proportion of homes in urban areas that were built over 30 years ago had reached nearly 20 percent, data from the country's housing and urban-rural development ministry showed.
It is estimated that by around 2040, nearly 80 percent of existing homes will be classified as "old," and, therefore, at higher risk of problems such as roof leaks, exterior walls degrading and aging facilities, according to the data.
As the proportion of old housing is rapidly increasing, the "housing maintenance fund" is falling short of the funding demand for repair and renovation, the report quoted Chen Wenjing, director of market research at the China Index Academy, as saying.
It is urgent to introduce additional funds, Chen said, adding that the establishment of a housing pension system will better address the issue of funding for housing maintenance and repair.
The housing pension system will consist of two types of accounts -- personal accounts and public accounts, Dong Jianguo, vice minister of housing and urban-rural development, said Friday at a press conference.
Personal accounts have been established through home buyers' payment for "housing maintenance fund," so the focus of the current pilot is for local governments to set up public accounts, according to Dong.
A certain proportion of land transfer fees, appreciation of housing maintenance funds and fiscal subsidies are likely to become sources of funds for the public accounts, Chen said.
The establishment of such a system will help boost people's living quality and living environment, Chen added.
Establishing the system to provide lifelong security for homes can help stabilize housing prices and prevent systemic risks, Li Yujia, chief researcher at the Guangdong Housing Policy Research Center, was quoted by the report as saying.
Experts also believe that the establishment of the housing pension system may bring new growth opportunities for companies such property management companies, intermediaries, insurance companies, financial institutions, and construction enterprises.
China has stressed the importance of building good houses for the people and providing full life-cycle security for housing.
Apart from the housing pension system, China will also introduce other measures including regular inspections of residential buildings and introduction of a housing safety insurance system, in a bid to meet people's demand for better housing.
